:max_bytes(150000):strip_icc()/GettyImages-2239385368-f645ae7ad006473abe05b4955d75a1d2.jpg "AMD Just Scored Another Big AI Chip Deal—What You Need to Know")
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Key Takeaways
- Oracle agreed to buy 50,000 GPUs from Advanced Micro Devices to build out its artificial intelligence capacity.
- Oracle said its initial deployment of those chips will begin in the third quarter of 2026, with more expected after that.
Advanced Micro Devices just racked up another major AI deal, with signs of more to come.
Cloud computing giant Oracle (ORCL) said Tuesday that it agreed to buy 50,000 GPUs from AMD (AMD) to build out its capacity to help customers scale their use of AI.
Oracle said its initial deployment of those chips would start in the third quarter of next year, with that number likely to expand in 2027 and beyond. The company said that as demand for AI grows, “customers need flexible, open compute solutions engineered for extreme scale and efficiency.”
Why This Matters to Investors
AMD’s latest deal with Oracle offers a strong signal for broader AI demand, as well as growing market share for the chipmaker and potentially others that have trailed AI chip leader Nvidia.
Shares of AMD were up about 3% in recent trading, not far from their record highs set earlier this month. They’ve added 85% of their value this year, with more than half of those gains coming in the wake of the massive partnership with ChatGPT maker OpenAI unveiled on Oct. 6.
Oracle shares were 2% lower Tuesday, but have climbed roughly 80% in 2025 so far on its rosy outlook for AI-driven growth.
